A HISTORY OF ORGANIC GROWTH

The Fund’s sub-advisor believes that small-cap markets are inefficient and contain the fastest growing stocks. Their research shows that most market participants are burdened with behavioral biases that negatively influence their decision making. Their core principles are:

By applying behavioral finance principles to identify overconfidence and anchoring by others, the Fund seeks securities mispriced by other investors.

The portfolio includes a blend of core growth stocks (sustainable earnings) and earnings catalyst stocks (expected to experience an earnings boost).

The bottom-up selection process builds a diversified portfolio with some thematic concentration.

Quarterly
Fund Materials

QUICK LINKS

Growth stocks typically are more volatile than value stocks; however, value stocks have a lower expected growth rate in earnings and sales. Investing in small-capitalization stocks may involve greater volatility and lower liquidity than larger company stocks. Investing in foreign securities may involve heightened risk due to currency fluctuations and economic and political risks. The Fund participates in a securities lending program. Please see the prospectus for a complete discussion of the Fund’s risks. There can be no assurances that the investment objectives of this Fund will be met.

For a prospectus containing more information, including expenses, click here. Read it carefully before you invest or send money. Past performance is no guarantee of future results.

American Beacon Funds and American Beacon Stephens Small Cap Growth Fund are service marks of American Beacon Advisors, Inc.

TOTAL RETURNS

Share Class

Inception Date

Prior Class Inception Date

CUSIP

Symbol

NAV

QTR

YTD

1 Year

3 Year*

5 Year*

10 Year / SinceInception*

Institutional

08/31/2006

02368A141

STSIX

19.01

4.58

19.45

19.45

7.78

11.64

7.84

Investor

12/01/2005

02368A133

STSGX

17.77

4.55

19.23

19.23

7.50

11.36

7.57

Y

02/24/2012

Inv 12/1/05

02368A125

SPWYX

18.91

4.55

19.42

19.42

7.67

11.55

7.69

A (without max sales charge)

02/24/2012

Inv 12/1/05

02368A166

SPWAX

17.59

4.47

19.06

19.06

7.39

11.19

7.47

A (with max sales charge)

02/24/2012

Inv 12/1/05

02368A166

SPWAX

17.59

-1.56

12.25

12.25

5.29

9.88

6.84

C (without max sales charge)

02/24/2012

Inv 12/1/05

02368A158

SPWCX

16.74

4.32

18.22

18.22

6.56

10.35

7.00

C (with max sales charge)

02/24/2012

Inv 12/1/05

02368A158

SPWCX

16.74

3.32

17.22

17.22

6.56

10.35

7.00

Institutional Class performance is shown since inception of the class.

Benchmark

QTR

YTD

1 Year

3 Year*

5 Year*

10 Year /SinceInception*

Russell 2000 Growth Index

4.59

22.17

22.17

10.28

15.21

9.19

Expense Ratios

Share Class

Gross

Net

Institutional

1.10

1.10

Investor

1.36

1.36

Y

1.16

1.16

A

1.47

1.47

C

2.24

2.24

Performance shown is historical and is not indicative of future returns. Investment returns and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Performance shown is as of date indicated, and current performance may be lower or higher than the performance data quoted. To obtain performance as of the most recent month end, click here.

Important Information: All investing involves risk, including possible loss of principal. Indexes are unmanaged and one cannot invest directly in an index.

For any Class of the Fund that began operating within the 10-year/since inception period shown, the performance shown prior to the inception date of the Class is that of a class (or series of classes) previously in operation. The combined returns have not been adjusted for any difference between the fees and expenses of the Class and the historical fees and expenses of the included previous class (or classes). If the previous class(es) had lower expenses, the resulting performance would be better than the Class would have realized during the same period. If the previous class(es) had higher expenses, the resulting performance would be lower than the Class would have realized during the same period. A portion of fees charged to the Institutional Class was waived from 2005 through 2013, fully recovered in 2014, waived in 2015 and fully recovered in 2017. Performance prior to waiving fees was lower than actual returns shown from 2006 through 2013. A portion of fees charged to the Investor Class was waived from 2005 through 2013, fully recovered in 2014, waived in 2015 and fully recovered in 2017. Performance prior to waiving fees was lower than actual returns shown from 2005 through 2013 and in 2015. A portion of fees charged to the Y Class was waived in 2012 and 2013 and fully recovered in 2014. Performance prior to waiving fees was lower than actual returns shown in 2012 and 2013. Specific information about any Fund may be found at americanbeaconfunds.com or in the prospectus.

The Russell 2000® Growth Index measures the performance of those Russell 2000® companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2000 and Russell 2000 Growth Indexes are registered trademarks of Frank Russell Company. Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data, and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication.

American Beacon Funds and American Beacon Stephens Small Cap Growth Fund are service marks of American Beacon Advisors, Inc.

Sector Weightings (%)

Information Technology

37.7

Health Care

20.6

Industrials

17.0

Consumer Discretionary

10.4

Financials

6.9

Consumer Staples

3.1

Energy

2.5

Materials

0.9

Telecommunication Services

0.6

Cash

0.2

May not equal 100% due to rounding.

Portfolio Statistics

Forward Price-to-Earnings Ratio (P/E)

29.6

Price-to-Book Ratio (P/B)

4.8

1-Year ROE

8.2

Weighted Average Market Cap ($)

3,654,000

3-Year Risk Summary

R2

0.92

Alpha

-1.26

Beta

0.87

Sharpe Ratio

0.55

Standard Deviation

13.5

Top 10 Holdings (%)

ICON plc

2.0

Proto Labs, Inc.

1.8

Calavo Growers, Inc.

1.7

CoStar Group, Inc.

1.7

WageWorks, Inc.

1.6

Take-Two Interactive Software, Inc.

1.6

Ligand Pharmaceuticals, Inc.

1.6

Trex Company, Inc.

1.5

Neogen Corp.

1.5

Proofpoint, Inc.

1.5

Total Fund Holdings:

111

Asset Allocation (%)

Equity

99.8

Cash Equivalent

0.2

The Fund may purchase and sell futures contracts to gain market
exposure on cash balances. May not equal 100% due to rounding.

Market Capitalization (%)

$1.5 billion - $7.5 billion

67.7

$750 million - $1.5 billion

15.5

$7.5 billion - $15 billion

9.0

$400 million - $750 million

5.3

Less than $400 million

1.8

Unclassified

0.8

The P/E Ratio of a stock is calculated by dividing the current price by forecasted 12-month earnings per share. The P/B Ratio of a stock is calculated by dividing the current price by book value per share. R-squared (R2) is the percentage of the Fund’s three-year return that is explained by movements in its benchmark index. Alpha is a measure of the Fund’s expected performance versus the benchmark, adjusted for relative risk. Beta is a measure of the Fund’s volatility versus the benchmark. Sharpe Ratio is a measure of the Fund’s return per unit of total risk. Standard Deviation is a measure of the historical volatility of the Fund’s returns. Return on Equity (ROE) is net income divided by net worth.

American Beacon Funds and American Beacon Stephens Small Cap Growth Fund are service marks of American Beacon Advisors, Inc.